Payless ShoeSource (PSS) 11/19/09 PriceWatch Alert Support At Around $20.02

Posted: Thursday, November 19, 2009 8:07 AM EDT

Payless ShoeSource (NYSE: PSS) closed yesterday at $20.84. So far the stock has hit a 52-week low of $3.85 and 52-week high of $21.85. Payless ShoeSource stock has been showing support around 20.02 and resistance in the 21.28 range. Technical indicators for the stock are Bullish and S&P gives PSS a weak 2 STAR (out of 5) sell rating. PSS appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Mar '10 17.50 covered call (PSS CW) for a net debit in the $16.44 area. That is also the break even stock price for this trade. This covered call has a 121 day duration, provides 21.11% downside protection and a 6.45% assigned return rate for a 19.45% annualized return rate (comparison purposes only). Payless ShoeSource does not pay dividends at this time. [THA-Seven Summits Research]

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